When is the Third Party Financed Sales Fee due for a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6
OTHER FEES
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Ultra2 Royalty Fee | $5,500-$7,800 plus 1.65%-1.90% Gross Receipts | Monthly | Gross Sales (Byrider Vehicle Sales): (i) during first year of operation of the Business, $5,500 per month; (ii) during second year of operation of the Business, the greater of $6,700 or 1% of Gross Sales (Byrider Vehicle Sales); and (iii) after second year of operation of Business, the greater of $7,800 or 1% of Gross Sales (Byrider Vehicle Sales). See Note 2. |
| Gross Receipts (CNAC Collections): After the first year of operation of the Business, 1.90% of your Gross Receipts (CNAC) throughout the remaining term of the Franchise Agreement, except, if you're signing your third (or more) Franchise Agreement, you will pay 1.65% of your Gross Receipts (CNAC Collections), so long as you are in compliance with all Franchise Agreements with Byrider Franchising, Partners and you continue to operate at least two additional Byrider Businesses that are open to the public. If you fail to meet these conditions, you will pay 1.90% for the remaining term of your third (or more) Franchise Agreement. | |||
| Unaffiliated Assignment of Retail Installment Contracts. You may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) you must obtain our approval of the Third Party; and (ii) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of your Gross Sales 12-month rolling monthly average. | |||
| Third Party Financed Sales Fee. You shall pay to us $250 per contract sold or assigned at time of vehicle sale from your dealer entity to Third Party ("Third P |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Third Party Financed Sales Fee is due at the time of the vehicle sale. Specifically, Byrider franchisees must pay $250 per contract sold or assigned from their dealer entity to a third party. This fee applies when the franchisee uses third-party financing for the vehicle sale.
This fee is charged each time a vehicle is sold and the retail installment contract is assigned to a third party. This means that franchisees need to account for this $250 fee in their pricing and financial planning for each applicable sale. It is important to note that this fee is in addition to any other fees associated with operating a Byrider franchise, such as royalty fees or advertising fees.
Prospective franchisees should carefully consider the implications of the Third Party Financed Sales Fee on their profitability. While using third-party financing can help facilitate sales, the $250 per contract fee will reduce the overall revenue generated from each transaction. Franchisees should evaluate the potential volume of third-party financed sales and factor this fee into their financial projections to accurately assess the financial viability of their Byrider franchise.